Tech surge lifts S&P 500 to close above 5,000 points
The S&P 500 surged Friday to finish above 5,000 points for the first time following the latest upward jump by large tech companies after months of gains. The outsized gains by Google parent Alphabet, Amazon and other US tech icons also lifted the Nasdaq, despite a lackluster day in many overseas bourses. A months-long rally in a series of large-capitalization tech stocks - also including Apple, Microsoft and Nvidia - has led to repeat records on Wall Street.
“This is an environment that emphasizes the importance of following the leaders,” said Adam Sarhan of 50 Park Investments. “When you look at the leading stocks in Wall Street, clearly you can see technology continues to lead time and time again.” The broad-based index finished at 5,026.61, up 0.6 percent, notching its 10th closing record of 2024. “While several US stock indices are trading in new record highs, their European peers find it difficult to keep up,” said Axel Rudolph, Senior Market Analyst at online trading platform IG. Recent labor and price data in the United States have underscored the resilience of the world’s largest economy.
December’s consumer price index was revised downward Friday to 0.2 percent on a monthly basis from 0.3 percent previously. Traders now turn their attention to the January CPI next week.
London fell for the third day in a row ahead of a slew of UK economic data next week, and AstraZeneca continued its slide on what the market interpreted as disappointing results.
Paris closed slightly lower as cosmetics company L’Oreal fell more than seven percent after it reported disappointing fourth quarter earnings. But luxury giant Hermes bucked the trend, rising almost five percent after posting record annual sales and net profit, propelling it above L’Oreal as France’s second biggest company in terms of market value. Stock markets in Milan, Brussels and Amsterdam inched higher. Oil prices climbed for a fifth straight day amid continued geopolitical worries.